How does RFID work?

RFID basically needs three components. A device for reading and writing data, the RFID reader/writer. With the RFID reader/writer data will be read and written onto RFID tags, transponders and smart labels. Therefor goods or ojects will be tagged with these mediums. The heart of a transponder is its microchip. Arround the microchip there is an antenna that is able to receive and transmit data to the environment through radiowaves over the air interface.